How has been the historical performance of Mansi Fin.(Chen)?

Revenue and Profitability Trends

Over the seven-year period ending March 2025, Mansi Fin.(Chen) experienced variable net sales, with a low point in the fiscal year ending March 2022, followed by a significant rebound to ₹12.67 crores in March 2025 from ₹7.67 crores the previous year. This resurgence reflects a strong recovery trajectory after a dip in sales during the pandemic-affected years. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income also followed a similar pattern, rising to ₹3.27 crores in March 2025 from ₹2.45 crores in March 2024, indicating improved operational efficiency.

Despite fluctuations, the company maintained a positive operating profit margin, which stood at 25.81% in March 2025, a slight decline from the peak margin of 36.03% in March 2023 but a marked improvement from the 14.15% margin in March 2022. Profit after tax (PAT) showed a recovery to ₹2.98 crores in March 2025, up from ₹2.07 crores the year before, with the PAT margin stabilising at 23.52%. Earnings per share (EPS) mirrored this trend, rising to ₹8.44 in March 2025 from ₹5.86 in March 2024, signalling enhanced shareholder value.

Balance Sheet and Financial Position

The company’s shareholder funds have steadily increased from ₹28.13 crores in March 2020 to ₹37.57 crores in March 2025, reflecting consistent accumulation of reserves and retained earnings. The book value per share has also appreciated from ₹79.57 to ₹106.29 over the same period, underscoring a strengthening equity base.

However, Mansi Fin.(Chen) carries a significant debt burden, with total debt reducing from ₹41.82 crores in March 2020 to ₹21.50 crores in March 2025. This reduction in debt levels is a positive sign, indicating efforts to deleverage and improve financial stability. Non-current liabilities have also decreased, contributing to a healthier liability profile.

On the asset side, the company’s net block of fixed assets has declined from ₹0.69 crores in March 2020 to ₹0.15 crores in March 2025, suggesting limited capital expenditure or asset disposals. Non-current assets, primarily long-term loans and advances, have decreased from ₹41.71 crores to ₹22.41 crores, which may reflect repayments or revaluation.

Current assets have also contracted, with cash and bank balances fluctuating but ending at ₹3.43 crores in March 2025. The company’s net current assets remain negative, indicating a working capital deficit that requires monitoring.

Cash Flow and Operational Efficiency

Cash flow from operating activities showed marked improvement in the latest fiscal year, rising to ₹11.00 crores in March 2025 from a nil figure in March 2024. This positive cash flow was driven by favourable changes in working capital, which increased by ₹8.00 crores. Conversely, cash flow from financing activities was negative at ₹10.00 crores, reflecting debt repayments or other financing outflows.

The company’s net cash inflow was neutral in March 2025, indicating a balanced cash management approach. The closing cash and cash equivalents stood at ₹2.00 crores, providing a modest liquidity buffer.

Summary and Outlook

In summary, Mansi Fin.(Chen) has shown a commendable recovery in revenue and profitability after a period of subdued performance. The company’s efforts to reduce debt and improve operating margins are positive indicators of financial discipline. However, the persistent negative net current assets and modest liquidity position suggest areas for cautious monitoring.

Investors should weigh the company’s improving fundamentals against its working capital challenges and debt levels. The steady rise in shareholder equity and EPS growth provide a solid foundation for future growth, but ongoing operational efficiency and cash flow management will be critical to sustaining this momentum.

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